The 200,000-kl tank, slated to begin operations by March 2024, will be able to hold 92,000 tonnes of LNG, making it larger than two ageing tanks that are set to be demolished, a company spokesman said.

Tokyo Gas also said it began on Thursday - in line with the construction schedule - commercial operation of the Hitachi LNG terminal, which is equipped with a 230,000-kl LNG tank that can hold about 100,000-110,000 tonnes of LNG.

Tokyo Gas also said it will build a second 230,000-kl LNG tank at the Hitachi terminal by March 2021.

A major provider of natural gas to Tokyo and the surrounding regions, Tokyo Gas lowered its projected growth of total gas sales for the next five years to a little over 2 percent a year on average, taking into account the liberalisation of retail city gas sector starting from April 2017.